This article is from the Australian Property Journal archive
A BRUNEI investor has sold a three-storey Art Deco office building on the edge of Melbourne’s CBD for $22.010 million to an interstate owner-occupier.
The sale price represents a $1 million-per-year increase on the $18 million he paid for 363 King Street in 2018.
The office building has 2,730 sqm of floor space and is located directly across from Flagstaff Gardens and two doors away from Haileybury College’s city campus, on a 1,12 sqm parcel.
The site was recently permit approved for a 13-storey office building that would have a building area of 5,518 sqm with basement car parking for 14 spaces.
Colliers’ Oliver Hay, Daniel Wolman, Matt Stagg and Leon Ma brokered the transaction via expressions of interest, saying the campaign saw multiple expressions of interest across a variety of buyer profiles, “highlighting not only the development upside in the West Melbourne precinct, but also the high demand for premium freestanding office assets”.
“The pent-up competition from the owner occupier market versus the build to value add investor profiles drove the campaign to achieve great attention which resulted in a fantastic outcome for both the vendor and the purchaser,” Hay said.
The site is also only a few metres from Lendlease’s dual office tower holdings on the southern side of Flagstaff Gardens, where it added 469 La Trobe Street to its 485 La Trobe Street asset in a $203 million deal one year ago to create a large site with sizable development potential.
